Sports Direct to extend staff bonus scheme after strong profits

Sports Direct said on Friday it was confident of hitting its year-end underlying earnings target of £205million after it reported a leap in profits.

The sportswear retailer, controlled by Mike Ashley, said that pre-tax profits rose 40 per cent to £100.7million in the six months to October 24, on revenues up 8 per cent to £819.9million.

The strong performance prompted the company to announce a two-year extension of its staff bonus scheme, which would see eligible employees receive a potential bonus of up to 12 months’ salary, weighted 25 per cent in shares in the fiscal year ending 2012 and 75 per cent in shares in 2013.

Boost: Sports Direct had its record trading day when England played its first match in last summer's World Cup

The chain must reach underlying earnings targets of £215million in 2012 and £250million the following year.

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The company said it enjoyed its strongest ever trading day when England played the United States in South Africa’s World Cup.

It added, however, that the impact of the football tournament dwindled following the poor performance by Fabio Capello’s team.

The chain, which is still targeting to open 10 and 15 new stores this year, said it remained cautious over its outlook.

Chief executive Dave Forsey said: ‘We anticipate the general retail environment in the first few months of 2011 to be tough. However, trading since the end of October has continued to be in line with management expectations.’